@WannaHouse wrote:
@Anonymous wrote:We are looking into the USDA direct loan program, but it states that you have to be not able to get conventional financing. We found a little "farm" with 10 acres and an old farm house for $85,000. The payment would only be 400-500 on a 33 year term that they do. The interest rate with the USDA is 4.675 (according to the gal). Taxes and insurance is about $125/month. I make $50,000/year. My husbands credit is wrecked so we are relying on mine.
I called a gal locally near this place that my dad recommended for conventional financing and she told me that my credit score had to be 740 (stated they are firm on that) and I would have to have at least 5% down. plus all the other associated costs. (and a sterling credit report)......is that true?
My current median score is 673 or there abouts, but I just paid all my credit cards off. I had 1500 left on them to pay off so my utilization will be down to 0 and I've made timely payments twice a month for the last year. I'm also going to get a pretty big ding off my credit report this month. Other than that I only have a 30 day late on a student loan (and that is only because I was consolidating when I graduated college back in 2006 and they received thier pay off 5 days after payment was due and Wells Fargo is being difficult and wont take it off)
Anyway so I am confused. I don't know if we will qualify for the USDA loan or conventional financing.......
Does any body know much about the USDA loans? How long do they take to go through? How hard are they to get approved for?
USDA direct loans are for very low income households. There is also the USDA guaranteed program that is for moderate income families. This is a great program! (We used this one) USDA programs do have limits on the amount of land you can get compared to the house. It's a percentage that I don't know right off hand, but something like the house has to be 2/3rds of the mortgage price.
The info on the conventional loan is probably correct. I believe 720 mids are the lowest accepted for conv.
If you are in a community state, then you can try to qualify by yourself. His scores will not count against you if you can qualify by yourself. Also, if you do not use his scores, you can not use his income. (correction..sorry!)
That's a few things I see right off the bat. There are other things too, but I will let others chime in as well.
I went back and corrected it. It was a bad day and I was tired!
@WannaHouse wrote:If you are in a community state, then you can try to qualify by yourself. His scores will not count against you if you can qualify by yourself. Also, if you do not use his scores, you can not use his income. (correction..sorry!)That's a few things I see right off the bat. There are other things too, but I will let others chime in as well.
I went back and corrected it. It was a bad day and I was tired!
Not a problem, I was just getting cornfused! My husband and I are in a similar situation re: the community property state complication and I want to be sure I have all the facts when we approach a lender.
BigTrees
@ShanetheMortgageMan wrote:
@rockymtngrl wrote:
I would check with USDA on the 10 acres. I would be very surprised if they would go for that (of course I have been surprised before!). They typically won't finance acerage, more than 2-3 acres tops. Like someone else said I can't remember the exact wordiing they use-but I would definetly look into that.Typically there is no acreage limit, however, site value (that is the land only) should not exceed 30% of the total appraised value, and of course must be strongly supported by comparable sales. Property must be residential, outbuildings dedicated to agricultural or business use are not permitted.
Thanks for clarifying that Shane! 